Forums

Any way to truly LEASE a MS to take full advantage of tax code.

Any way to truly LEASE a MS to take full advantage of tax code.

Submitted by CalabasasKid on June 23, 2013

Hello all. I'm new to the forum and am close to surprising the wife with a P85 loaded up. She's been faithfully driving the same SUV for over 10 years. If I could just manage to lease the darn thing, i would be more likely to go through with it. A 5 year lease would likely residualize about 30% of the car translating to a likely payment of $1300-$1400 per month which I could write off through the company. Not sure about most of you folks, but I'm in a combined 45% tax bracket The only thing better than driving an MS is doing so while the tax man picks up 45% of the tab. Financing it and depreciating it even with bonus depreciation just isn't as advantageous. Anyone know of any banks leasing?

Sudre_ |
June 24, 2013

Not that I know of in the US.
If you live in Canada it's another story.

AmpedRealtor |
June 24, 2013

What would it take to set up your own leasing company - in name only? Leasing company (which you own) buys the car cash (which you presumably have), then leases the car to your business. You get the business deductions, and later when you give the car back to the leasing company, it's still in your garage. :)

I don't know what's involved, but it's fun to think about.

CalabasasKid |
June 25, 2013

AmpedRealtor
I thought of that as well. I could purchase the car in order to enjoy the tax credit and CA rebate and then lease it to my company on a six year, zero residual lease. The only problem per my accountant is that I would have to depreciate the car while my company will have to 1099 me likely creating a taxable event for me as an individual. Still crunching the numbers though. Now I see why purchasing the car is the only avenue because its the only way to obtain the tax credit and state rebates.